Cloud Computing

Nearly Half of Brazilian Companies Will Invest in Cloud Services This Year Despite Security Concerns

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Cloud adoption is getting hot in Brazil with 42 percent of companies planning to invest in cloud during 2015 and 41 percent already using it, according to a Frost and Sullivan survey released Thursday. Twenty-five percent of the companies planning to invest in cloud this year are doing so for the first time.

Service providers that can address cloud adoption concerns with Brazilian companies may find a huge growth opportunity. By the end of 2015, almost 66 percent of companies in Brazil will use at least one cloud-based service. “While the majority of companies in the region are currently opting for the private cloud model, it is anticipated that the hybrid model will command significant attention in the coming years,” said the report.

It’s possible cloud use could positively impact the shaky Brazilian economy. ENISA recently said that government cloud use is critical to the European economy.. However, Brazil could avoid some potential pitfalls of quick cloud adoption by studying the results of other countries. For example, companies across the world are being driven back to private cloud after an initial foray into public and hybrid models, mainly due to security concerns.

Since the findings indicate Brazil may be moving more towards a hybrid model it will be important for providers to solidly address security concerns up front to prevent the same issue from happening there.

The survey asked about the information technology habits of 313 IT heads in SMB and enterprise size Brazilian companies. The researchers were interested in understanding several aspects such as cloud use, security and big data analytics.

Brazilian companies are concerned about data privacy and security and cite infrastructure and strong SLAs as important factors in selecting a cloud provider. Cloud services companies wishing to do business in Brazil may find it useful to educate customers on the security of their services. “Many hesitant companies believe that sending information to the cloud makes it more vulnerable. Culturally, Brazilian companies prefer centralized control. As a result, many IT executives equate the use of cloud computing with a loss of control,” according to the report. “These companies do not realize that it will be hard for them to be as well-equipped as service providers to fend off advanced threats.”

These findings are similar to cloud adoption studies in other geographic regions. Cloud adoption in Asia is on the rise by impeded by the typical concerns of security and privacy. Europeans are adopting cloud but concerned about security risks like Heartbleed and the lack of privacy that comes with PRISM.

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